From YouTube Classroom to Dalal Street: How PhysicsWallah Is Poised to Disrupt India’s EdTech Landscape with a ₹3,820-4,600 Crore IPO
PhysicsWallah is poised to disrupt India’s EdTech landscape through an Initial Public Offering (IPO) of approximately ₹3,820 crore, marking a significant milestone as the first Indian EdTech unicorn to go public.
The move is expected to boost investor confidence in the edtech sector, which has faced a “funding winter”.
Key Details of the IPO:
Issue Size: The total IPO is expected to raise ₹3,820 crore (approximately $431 million).
Structure: It comprises a fresh issue of shares worth ₹3,100 crore to raise new capital for the company and an Offer for Sale (OFS) of ₹720 crore by the founders, Alakh Pandey and Prateek Maheshwari, who will each offload shares worth ₹360 crore.
Valuation: The company is reportedly targeting a valuation of around $5 billion through the IPO.
Timeline: PhysicsWallah confidentially filed its draft papers with SEBI in March 2025 and received approval in July 2025. The IPO is anticipated to launch in the coming weeks of late 2025.
Advisors: The share sale is being managed by prominent financial institutions including Kotak Mahindra Capital, Axis Bank, JPMorgan Chase, and Goldman Sachs.
Introduction
The Indian ed-tech sector is gearing up for what may become a landmark public offering as PhysicsWallah Ltd (PW) inches closer to launching its initial public offering (IPO). Founded by educator Alakh Pandey and co-founder Prateek Boob, PhysicsWallah has grown from a humble YouTube channel into a full-fledged ed-tech company with online, offline and hybrid operations.
The company is now seeking to raise between ₹3,820 crore and ₹4,600 crore via its IPO, a move that, if successful, could mark a turning point not only for the company but for India’s broader education-technology ecosystem.
In this article, we dive into the background of PhysicsWallah, the key parameters of the IPO, the strategic context, the strengths and risks, and what investors and stakeholders should watch for.
The Rise of PhysicsWallah:
PhysicsWallah started in 2016 when Alakh Pandey began uploading physics tutorials on YouTube. Over time, the channel amassed a large following among students preparing for high-school and competitive entrance exams.
By 2020, the company formally launched the PhysicsWallah app and expanded its offerings to include live online classes, test series, offline centres (“PW Vidyapeeth”, “PW Pathshala”), and hybrid delivery models.
The company’s stated mission is to make quality education affordable and accessible, reaching students across the country, including underserved regions.
Notably, PhysicsWallah became a unicorn (valuation > US$1 billion) in 2022, and in a September 2024 funding round raised $210 million at a valuation of approximately US$2.8 billion.
In March 2025, the company converted from a private limited entity to a public limited company in anticipation of the IPO.
Key IPO Details:
Here are the salient features of the IPO as publicly reported so far:
PhysicsWallah filed its draft Red Herring Prospectus (DRHP) via the confidential route with Securities and Exchange Board of India (SEBI) in March 2025.
SEBI granted its approval/observations around July 2025, making PhysicsWallah one of the first ed-tech firms cleared via the confidential pre-filing route.
The proposed issue size has been reported variably between ₹4,600 crore ( US$533 million) and ₹3,820 crore ( US$431 million).
The latest updated DRHP filed in September 2025 lists the issue size at ₹3,820 crore, comprising a fresh equity raise of ₹3,100 crore and an Offer-for-Sale (OFS) of ₹720 crore by founders Alakh Pandey and Prateek Boob (each selling shares worth ~₹360 crore).
The company is expected to list on both the National Stock Exchange of India (NSE) and the Bombay Stock Exchange (BSE).
Key bankers: Kotak Mahindra Capital Company, JP Morgan India Securities, Goldman Sachs India Securities, Axis Capital Limited.
Proceeds usage: the funds from fresh issue are planned for expansion of offline & hybrid centres, investment in subsidiaries (e.g., Xylem Learning Pvt. Ltd., acquisition of stake in Utkarsh Classes & Edutech Pvt. Ltd., technology and marketing spends, and general corporate purposes.
Strategic Significance:
For the Company:
PhysicsWallah’s IPO represents a major scaling-up of its ambitions—from being a disruptive low-cost test-prep platform to becoming a publicly listed ed-tech firm. It also provides liquidity for early investors and a public market valuation benchmark. The fresh capital will fuel expansion of offline and hybrid coaching centres—a growth frontier beyond pure online delivery.
For the Indian EdTech Sector:
The IPO has broader implications: PhysicsWallah is among the first pure‐play Indian ed-tech companies to tread the public markets, and its success (or failure) could set a template for others. Regulatory trends – such as SEBI’s confidential filing route for DRHPs – are also evolving.
For Investors:
For institutional and retail investors, the IPO provides an opportunity to participate in one of India’s fast-growing ed-tech firms ahead of the listing. However, given the scale of the raise and the competitive intensity in ed-tech, the risk/return profile must be carefully assessed.
Strengths & Highlights:
Strong founder and brand heritage: Alakh Pandey enjoys high recall among India’s JEE/NEET aspirants; that gives the business a personal brand edge.
Low-cost, accessible model: PhysicsWallah has made affordable coaching available in a space where costs can be high, thereby tapping a larger addressable market, including Tier-2/3 cities and rural areas.
Omni-channel capability: While many ed-tech firms went purely digital, PW’s hybrid and offline expansion gives it diversification—helping reach students with limited online access.
Large potential market: India’s K-12 + competitive exam coaching market is huge and under-penetrated, especially when it comes to affordable, high-quality options.
Momentum and timing: The IPO comes in a window of improved market sentiment for tech‐growth firms and following regulatory easing in IPO processes.
Risks & Considerations:
Profitability concerns: Rapid growth often comes at the cost of high marketing/expansion spends. Reports indicate the company is still loss-making, which means earning meaningful profits post-listing will be a key metric.
Execution risk in offline/hybrid expansion: Physical centres cost more (real estate, faculty, operations) and scaling them can be challenging.
Competitive intensity: India’s ed-tech market has many players (established and new), so differentiating and retaining students will require constant innovation.
Founder/brand risk: Because the brand is closely associated with Alakh Pandey, the company must ensure that systems and brand identity are not overly dependent on one person. Some analysts highlight this as a structural risk.
Regulatory & quality risks: The DRHP points out unusual risk disclosures—including student safety incidents, teacher/student misconduct and other operational risks in its offline centres.
What to Watch Going Forward:
IPO pricing & valuation: The final price band and valuation will determine investor appetite and listing performance. Although the targeted valuations are high (US$3-5 billion territory) the market will scrutinise growth versus profitability.
Listing date and momentum: With the date yet to be publicised, timing (market conditions) will matter.
Post-IPO performance: How the company deploys the raise—expansion of offline centres, acquisitions, technology—will be critical. Investors will also check the retention metrics, student outcomes, cost control and talk of margins.
Sector ripple effect: If PhysicsWallah performs well, it may encourage more ed-tech IPOs in India. Conversely, any setback may dampen the sector’s IPO hopes.
Governance and transparency: As the company moves from private to public, investor scrutiny around governance, disclosures, board composition and brand integrity will increase.
Conclusion:
PhysicsWallah’s IPO is more than just another listing—it’s a potential milestone for India’s ed-tech ecosystem. From a YouTube channel to a near-US$3 billion company in a few years, the journey illustrates how disruptive business models can thrive when aligned with deep need (affordable quality education) and strong founder/market fit.
For investors and market watchers, the upcoming IPO offers a window into the future of Indian growth-tech companies entering the public markets. At the same time, the company must deliver on its promise of scale, quality, profitability and governance if it is to justify its ambitions and valuations.
Team- Intellex Strategic Consulting Private Limited
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